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County reviews denied intercap loan request from volunteer fire department; commissioners ask for follow-up
Summary
The county received notice an intercap loan application from the volunteer fire department was not approved over concerns the department could not support loan payments; commissioners asked staff to contact the fire chief for a plan B and to return with options.
Daniels County commissioners discussed a notification on Jan. 20 that an intercap loan application from the local volunteer fire department had not been approved because lenders questioned whether the department could support the loan payment without county general-fund assistance.
Commissioners reviewed an email noting the intercap program staff believed the fire district could not support the debt service and suggested the county general fund might need to be a backstop. The loan amount discussed in the meeting was $50,000 (10-year term discussed), and the repayment estimate cited informally during the meeting was in the low thousands annually, although the transcript records varying estimates and no final amortization schedule.
The treasurer told the board she had responded that the county general fund may not be able to absorb the payments and that the matter should be discussed by the commissioners. Commissioners asked staff to contact Fire Chief Neil and request a meeting to review the fire department’s budget, a prioritized equipment list, and contingency plans for covering loan payments if a lender requires county backing.
No formal action to commit county funds was taken at the meeting. The board discussed seeking more detailed budget information from the fire department and asked staff to follow up with the fire chief to determine next steps and possible alternatives.
